Hydrogen Generation Market size was valued at USD 157.17 billion in 2023 and is likely to reach USD 523.67 billion by 2036, registering around 9.7% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of hydrogen generation is estimated at USD 169.37 billion.
The growth of the market can be attributed to the increasing demand for green energy resources, high requirement to balance demand and supply in the power sector, and the growing need for long term power storage across the world. Along with these, high emissions of greenhouse gases are also expected to drive market growth in the coming years. Greenhouse gases are responsible for rising temperatures globally. Hydrogen is assessed to play a crucial role in facing climate emergency as renewable and nuclear electricity alone will never be able to provide all our energy needs, which in turn is projected to be a major factor to lead to market expansion in the near future.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
8.5% |
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Base Year Market Size (2023) |
USD 17.46 billion |
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Forecast Year Market Size (2036) |
USD 50.42 billion |
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Regional Scope |
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The market is segmented based on source into blue hydrogen, green hydrogen, and grey hydrogen. Among these, the segment for blue hydrogen is anticipated to occupy the largest market share during the forecast period accounting to its low production cost and the usage of energy efficient technology for its production. Additionally, on the basis of application, the transportation segment in the hydrogen generation market is projected to grow with a significant CAGR over the forecast period. The growth of the segment is mainly driven by the rise in demand for fuel cell electric vehicles (FCEV) and increasing requirement of energy in developing countries.
Our in-depth analysis of the global market includes the following segments
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By Source |
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By Technology |
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By Application
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APAC Market Statistics
Geographically, the market is segmented into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa region. Asia Pacific is expected to account for largest revenue share by 2036, owing to rising requirement of energy in the region and escalating adoption of greener technologies to fulfil government's targets for reducing GHG emissions, especially in China and India.
Furthermore, North America is anticipated to garner the largest market share during the forecast period owing to the growing investment in research and development and the government’s support to promote hydrogen generation using innovation funds, mandatory targets, and public-private partnerships. In 2021, the United States’ hydrogen production is evaluated to constitute to about 12%–15% of global hydrogen production. Similarly, the market in Europe is also anticipated to occupy a significant share in the market on account of the increasing adoption of electric vehicles in the region.
April 27, 2021: In its report ‘Making the Hydrogen Economy Possible: Accelerating clean hydrogen in an electrified economy’, Energy Transitions Commission (ETC) states that the production costs for clean hydrogen can be brought well below USD 2/kg by 2030.
Author Credits: Dhruv Bhatia
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